Question Period Note: PBO Report on Insurance Benefits and Coverage

What is TBS’s overall response to the PBO Report on Insurance Benefits and Coverage?

• Public service benefits plans support the health and well-being of plan members, including public servants and Parliamentarians, with reasonable and sustainable coverage.
• These plans are prudently managed. Plan coverage is set through negotiations with employee and retiree representatives and guided by comparisons to similar plans.
• Costs for health and dental benefits have been rising in recent years, mainly due to expensive new drugs, increased use of benefits, and an aging population. These trends are seen across Canada and internationally.
• As the PBO noted, benefit costs are not directly comparable across jurisdictions. Coverage, cost sharing arrangements, employer premium rates, and administrative structures can differ substantially.
• We are reviewing the PBO report carefully and will take the time necessary to fully assess its findings.

On December 9, 2025, the Standing Committee on National Finance (NFFN) adopted a motion requesting the Parliamentary Budget Office (PBO) examine the cost trajectory of the federal public service benefit plans and programs and compare those costs with other jurisdictions.

On January 26, 2026, the Treasury Board of Canada Secretariat (TBS) received an Information Request from the Interim Parliamentary Budget Officer to provide the:
• Employer cost of public service benefit plans, by plan, including the RCMP Life and Disability Insurance Plan,
• cost per employee or plan member,
• number of employees or plan members, and
• trajectory of these costs and the number of employees or plan members.

The information was to be provided for fiscal year 2017-2018 to 2024-2025 with projected information to fiscal year 2029-2030.

TBS first responded February 5, 2026, with information on the Employer cost, the cost per plan member and the number of plan members broken down by plan for the years 2017-2018 to 2024-2025. This included the Public Service Health Care Plan, the Public Service Dental Care Plan, the Pensioners’ Dental Services Plan, the Disability Insurance Plans, and the Royal Canadian Mounted Police Disability Insurance Plan.

A subsequent response was provided on February 12, 2026, that included projections of plan members, plan expenditures, and average cost per member from 2025-26 to 2030-31. It also included a breakdown of plan expenditures to reflect Employer contributions, administration fees including taxes, and paid claims from 2017-18 to 2024-2025 and projections from 2025-26 to 2030-31.

Information on future year projections was requested to not be released as this information is used only to advise Ministers as well as Cabinet Committees (e.g., Treasury Board) for planning purposes and its public release is protected under negotiations confidence.

In the response, TBS explained the reasons why projected data of this nature is normally protected from public release, including the risk that disclosure could compromise the Employer’s position when in negotiations.

Following receipt of the above information, PBO representatives had two follow-up requests with questions on the data supplied. TBS has provided the PBO with all requested information, with no outstanding items remaining.

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